Our previous speaker, Mr. Blyth, in his paper on the Design of Incentive Contracts, has given us a lucid explanation of the basic principles of incentives and examples of cost, performance and delivery conditions which could be used as incentives and the objectives to which they could be directed.

Following on this paper, one could initiate a discussion on the basic philosophy behind the use of incentives, whether the incentives as stated are likely to be achieved, and propose various alternative methods of achieving these objectives without using contractual conditions. I have no doubt that many points such as these will be raised later during the discussion.